WorldCat Identities
Fri Mar 21 17:12:55 2014 UTClccn-no920180790.23Dow 36,000 /0.690.92Tax reforms and investment : a cross-country comparison /57491568Kevin_Hassettno 920180793215967Hassett, K.Hassett, KevinHassett, Kevin Alanlccn-n84217238Hubbard, R. Glennlccn-n83056318Auerbach, Alan J.edtnc-national bureau of economic researchNational Bureau of Economic Researchlccn-n99033509Glassman, James K.lccn-n79139286National Bureau of Economic Researchlccn-n78083381American Enterprise Institute for Public Policy Researchlccn-nr89009252Metcalf, Gilbert E.lccn-no94022045Cummins, Jason G.viaf-280115833Cohen, Darrellccn-n83038874Sòˆdersten, JanHassett, Kevin A.Conference proceedingsHandbooks, manuals, etcUnited StatesTaxationStocks--PricesDow Jones industrial averageInvestmentsStock exchangesFiscal policyValue-added taxBudgetSurplus (Economics)Investment tax creditCapital investmentsSpendings taxSpeculationInvestment analysisTax incentivesBusiness enterprises--TaxationTax incidenceCapital investments--Mathematical modelsCompetitionTaxation--Econometric modelsInvestment tax credit--Econometric modelsCapital investments--Econometric modelsInternational business enterprises--Taxation--Econometric modelsInvestment tax credit--Mathematical modelsFiscal policy--Econometric modelsGenerational accounting--Econometric modelsIncome distribution--Econometric modelsInvestments--Mathematical modelsInvestments--Econometric modelsSwedenIndustrial statisticsDwellings--Energy consumption--Econometric modelsDividends--TaxationInsulation (Heat)--Cost effectivenessDwellings--Energy conservation--Econometric modelsInflation (Finance)--Mathematical modelsTaxation--Mathematical modelsCapital costs--Mathematical modelsFinancial statements--StandardsFinancial statements, ConsolidatedFinancial statementsLaw and economicsCapital investments--TaxationTax expendituresCapital costs--Econometric modelsInflation (Finance)--Econometric modelsStocksTax incentives--Mathematical modelsBusiness enterprises--Taxation--Mathematical models190019891990199119921993199419951996199719981999200020012002200320042005200620072009201020122013400164289332.6322HG4915ocn492028899ocn8675872816048ocn041326160book19990.23Glassman, James KDow 36,000Handbooks, manuals, etcDescribes the Dow's upward trend, why stocks can be less risky than bonds, and how to build a portfolio based on that knowledge+-+40968476353103ocn058985908book20050.76Toward fundamental tax reformConference proceedings"Toward Fundamental Tax Reform provides readers with concise but varying perspectives on the possibilities of tax reform. It also focuses attention on key questions in the scholarly debate: Would a different tax code dramatically alter the functioning of the economy? How much damage does current law do? Can relatively small changes to the tax code deliver most of the benefits of more dramatic reforms such as the flat tax? Are political forces that oppose efficient tax systems simply too powerful to overcome? Will tax reform inevitably harm the poor? Can a tax reform, if enacted, be sustained?"--BOOK JACKET+-+69879299353006ocn070769306file19990.70Hassett, Kevin AThe magic mountain a guide to defining and using a budget surplus2443ocn043662227book19990.84Hassett, Kevin ATransition costs of fundamental tax reformConference proceedingsTransition costs surround debates over fundamental tax reform. Calculations of transition costs have followed the setup pioneered by Alan Auerbach and Larry Kotlikoff. In this volume, the authors focus on the most critical transition issues from the political perspective+-+97669299352227ocn049415981book20020.28Hassett, Kevin ABubbleology : the new science of stock market winners and losers+-+24745145152063ocn043255494book19990.84Hassett, Kevin ATax policy and investmentThis book studies topics relating to fundamental tax reform. The topics include, among others, the effects of taxation on household saving, the effects of reducing taxes on individuals' work effort, issues in the taxation of financial services, and international issues in consumption taxation+-+31352299351983ocn047764339book20010.81Inequality and tax policyConference proceedings+-+98969299351194ocn806993497book20120.86Rethinking competitiveness"As the 2012 election season has demonstrated, few politicians can make a speech concerning economic policy without using the term "competitiveness." Yet, despite its frequent and casual use, there is little if any agreement on its meaning. Academics have been slow to embrace the term, holding a healthy skepticism toward such political utterances. The American Enterprise Institute (AEI) brought together experts from a variety of fields to discuss the issue of competitiveness and how it may influence their disciplines. This volume is composed of the nine papers that were presented at three conferences attempting to answer the question: if "competitiveness" were to have a rigorous and relevant meaning in your field, what might that be? The volume begins with a chapter outlining the arguments surrounding competitiveness and a discussion of the Tiebout model along with its application to the international stage. From there, the chapters address the subjects of competitive tax policy, education policy, immigration, innovation, health care, international trade, and measuring international competitiveness. The conclusions these papers reach enrich the debate on what competitiveness is and how policymakers should strive to support it."--Page 4 of cover10213ocn037102937book19970.88Cohen, DarrelInflation and the user cost of capital : does inflation still matter?In the late 1970s, many economists argued that the deleterious effects of inflation on the user cost of capital for U.S. firms were large. Since that time, the tax code has changed, the level of inflation has dropped significantly, and the of investment has evolved considerably. In this paper, we demonstrate that the net effect of these changes has--under reasonable assumptions--not relegated inflation to the sidelines. Indeed, we conclude that: (1) inflation, even at its relatively low current rates, continues to increase the user cost of capital significantly; (2) the marginal gain in investment in response to a percentage-point reduction in inflation is larger for lower levels of inflation; (3) the beneficial effects for steady-state consumption of lowering inflation even further than has been achieved to date would likely be significant; and (4) inflation has only a small impact on intratemporal distortion in the allocation of capital within the domestic business sector. We also show that the magnitude of the inflation effect on the user cost of capital is likely much smaller in open economies9811ocn033292405book19950.92Cummins, Jason GTax reforms and investment : a cross-country comparisonWe use firm-level panel data to explore the extent to which fixed investment responds to tax reforms in 14 OECD countries. Previous studies have often found that investment does not respond to changes in the marginal cost of investment. We identify some of the factors responsible for this finding and employ an estimation procedure that sidesteps the most important of them. In so doing, we find evidence of statistically and economically significant investment responses to tax changes in 12 of the 14 countries939ocn041536054book19990.88Auerbach, Alan JUncertainty and the design of long-run fiscal policyThis paper explores optimal fiscal policy in an overlapping-generations general-equilibrium model under uncertainty and the impact on optimal policy of the introduction of a type of policy stickiness intended to account for the stylized fact that major reforms happen infrequently. In general, our analysis suggests not only that action should not be delayed, but further that action should actually be accelerated. The added realism of restrictions on the frequency of policy changes alters this result in two ways. The prospect of being unable to set policy in the future occasions even more precautionary saving today, if the government acts. However, the government may also choose not to set policy, and its inaction range is very asymmetric. Because the impact of its policies on the current elderly cannot be reversed in the future, the government is much more likely to choose inaction when fiscal tightening is called for. Thus, the optimal policy response over time might best be characterized by great caution in general, but punctuated by occasional periods of apparent irresponsibility939ocn035313766book19960.92Hassett, Kevin ATax policy and investmentIn this paper, we summarize recent advances in the study of effects of tax policy on the fixed investment decisions of firms. We attempt to identify consensus where it has been achieved and to highlight important unresolved issues. In addition, we discuss the implications of recent findings for the analysis of policy options, and discuss arguments for and against long-run tax policy that favors business investment spending919ocn039969276book19980.90Hassett, Kevin AAre investment incentives blunted by changes in prices of capital goods?Recent research on business investment decisions suggests that real investment in plant and equipment is quite sensitive to changes in the user cost of capital, pointing to the possibility that long-run changes in tax policy may have a significant impact on an economy's capital stock. Indeed, many countries have at times adopted investment tax incentives to stimulate investment. The prevalence of investment incentives suggests that local policymakers believe that incentives are effective in increasing investment at a reasonable cost in terms of lost revenue for a given increment to investment. In this paper, we explore this issue by estimating the extent to which countries are price-takers in the world market for capital goods. We find that most countries -- even the United States -- likely currently face a highly elastic supply of capital goods, suggesting that the effect of investment incentives on the price of investment goods is small. Hence efforts of long-run changes in investment tax policy are likely to materialize in real investment rather than simply being dissipated in changes in capital-goods prices9012ocn033051608book19950.92Auerbach, Alan JTaxation and corporate investment : the impact of the 1991 Swedish tax reformIn 1990, the government of Sweden introduced a major tax reform to take effect in 1991. The Swedish system prior to the legislation was so complex that the size and magnitude of the likely effects of the reform on incentives to invest were unknown. In this paper, we draw on òˆdersten (1989) and Auerbach and Hassett (1992) and derive an expression for the user cost of capital that captures the essential features of the Swedish tax code both before and after the reform. We estimate the model for investment in equipment and find that the responsiveness of Swedish firms to the user cost is quite similar to that found for the U.S. Finally, we employ our model and estimates to assess the effects of the 1991 reform. We find that the impact of the reform on investment is likely to have been minor and had little to do with the contemporaneous sharp drop in investment8911ocn037391655book19970.88Metcalf, Gilbert EMeasuring the energy savings from home improvement investments : evidence from monthly billing dataAn important factor driving energy policy over the past two decades has been the Energy Paradox, ' the perception that consumers apply unreasonably high hurdle rates to energy saving investments. We explore one possible explanation for this apparent puzzle: that realized returns fall short of the returns promised by engineers and product manufacturers. Using a unique data set, we find that the realized return to attic insulation is statistically significant, but the median estimate (12.3 percent) is close to a discount rate for this investment implied by a CAPM analysis. We conclude that the case for the Energy Paradox is weaker than has previously been believed849ocn030841368book19940.92Hassett, Kevin AInvestment with uncertain tax policy : does random tax policy discourage investment?In models with irreversible investment, increasing uncertainty about prices has been shown to increase the required rate of return (hurdle rate) and delay investment (e.g., Pindyck, 1988). One serious form of uncertainty faced by firms, a form that policy makers could conceivably control, is tax uncertainty. In this paper, we show that it does not follow from past work that tax policy uncertainty increases the expected hurdle price ratio and delays investment. This is because tax uncertainty has an unusual form that distinguishes it from price uncertainty: tax rates tend to remain constant for many years, and then change in large jumps. When tax policy follows a jump process, firms' expectations of the likelihood of the jump occurring have important effects on investment. Indeed, as we show below, while price uncertainty increases the hurdle rate and slows down investment, tax uncertainty has the opposite effect8410ocn044816491book20000.92Auerbach, Alan JOn the marginal source of investment fundsUnder the new view' of dividend taxation developed in Auerbach (1979), Bradford (1981) and King (1977) the marginal source of finance for new investment projects is retained earnings. In this case, the tax advantage of retentions precisely offsets the double taxation of subsequent dividends: taxes on dividends have no impact on the investment incentives of firms using retentions as a marginal source of funds and paying dividends with residual cash flows. We find evidence that dividends do respond to investment and cash flow for the nonfinancial corporate sector as a whole in a manner consistent with the new view. We also find that this dividend pattern is weaker for firms with better access to capital markets, as measured by bond rating and the number of analysts following them. Finally, we find that, although new share issues and repurchases respond to the same firm characteristics as dividends do, the pattern of these responses is consistent with a broader interpretation of the new view that preserves the main result of dividend-tax irrelevance with respect to the cost of capital807ocn050758148book20020.92Auerbach, Alan JOptimal long-run fiscal policy : constraints, preferences and the resolution of uncertaintyWe construct a computational dynamic stochastic overlapping generations general equilibrium model with uncertain lifetimes and explore the impact of policy stickiness (specifically, a major reform will preclude future reforms for a generation) on optimal long-run fiscal policy. Under such circumstances, entitlement reforms exhaust a valuable option to move in the future. We explore the conditions under which the gain to waiting is large enough to induce optimizing policymakers to delay reforming a suboptimal system. We also allow for the uncertainty to have ARCH characteristics and explore the impact of time-varying uncertainty on the optimality of delayed policy action7810ocn030311102book19940.90Cummins, Jason GAccounting standards, information flow, and firm investment behaviorWe present a description of two different accounting regimes that govern reporting practice in most developed countries. 'One-book' countries, e.g. Germany, use their tax books as the basis for financial reporting and 'two-book' countries, e.g. the United States, keep the books largely separate. We derive a structural model and formalize a testable implication of our discussion: firms in one-book countries may be reluctant to claim some tax benefits if reductions in taxable income may be misinterpreted by financial market participants as signals of lower profitability. Econometric estimates suggest that accounting regime differences play an important role in describing domestic investment patterns both within and across countries779ocn041625489book19990.90Auerbach, Alan JA new measure of horizontal equityIn this paper, we propose a new measure of horizontal equity that overcomes many of the shortcomings of previous proposed measures. Our starting point is the observation that a well-behaved social welfare function need not evaluate global' (vertical equity) differences in after-tax income using the same weights it applies to local' (horizontal equity) differences, even though this constraint has been applied in the past. Following work on the structure of individual preferences, we show that a social welfare function can imply different preferences toward horizontal and vertical equity. Adopting the general approach to the measurement of inequality developed by Atkinson (1970), we use such a social welfare function to derive measures of inequality that are decomposable into components naturally interpreted as indices of horizontal and vertical equity. In particular, the former index measures deviations from the fundamental principle that equals be treated equally. Finally, we apply our new measure to two tax-return data sets, evaluating the degree to which the horizontal equity of the US personal income tax has changed over time, and how horizontal equity would be altered by one version of recent proposals to do away with the so-called marriage penalty.'+-+4096847635+-+4096847635Fri Mar 21 15:28:40 EDT 2014batch27372